Restaurant Break-Even Calculation
How many orders cover the rent — with transparent assumptions.
How to calculate restaurant break-even from monthly fixed costs, average order value and variable cost percentage — including daily order targets and why this is not a financial guarantee.
Published by BYNOQ Restaurant Growth Academy10 min read
The simple model
Add rent, salaries, utilities, software and other costs that do not move with each plate. That is monthly fixed cost. Variable cost percentage is mostly food (and packaging, commissions, payment fees if you include them). Contribution per order is average order value minus that variable slice.
Divide fixed cost by contribution per order. That is the monthly order count that covers the model. Divide by days open for a daily picture: you need approximately X orders per day to cover estimated fixed and variable costs.
Stress the assumptions
If average order value drops 10%, how many more tickets do you need? If food cost runs hotter than the recipe sheet, the daily target jumps. A conservative / expected / optimistic view is more honest than a single heroic number.
Frequently Asked Questions
1. Is break-even the same as profit?
No. Break-even is the point where estimated contribution covers estimated fixed costs. Profit starts after that, and only if your assumptions were close to reality.
Protect today's revenue
See how BYNOQ helps restaurant owners stop leakage and grow repeat guests.